Back to top

Image: Bigstock

Gilead Sciences (GILD) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Gilead Sciences (GILD - Free Report) ended the recent trading session at $64.70, demonstrating a +1.33% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.11% loss on the day. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq depreciated by 0.23%.

Heading into today, shares of the HIV and hepatitis C drugmaker had lost 1.13% over the past month, lagging the Medical sector's gain of 4.12% and the S&P 500's gain of 3.51% in that time.

The investment community will be closely monitoring the performance of Gilead Sciences in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.58, reflecting a 17.91% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.66 billion, up 0.91% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.76 per share and revenue of $27.47 billion. These totals would mark changes of -44.05% and +1.31%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Gilead Sciences. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. Gilead Sciences currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Gilead Sciences is currently exchanging hands at a Forward P/E ratio of 16.98. This indicates a discount in contrast to its industry's Forward P/E of 22.87.

One should further note that GILD currently holds a PEG ratio of 1.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Biomedical and Genetics industry had an average PEG ratio of 2.12 as trading concluded yesterday.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 33% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Gilead Sciences, Inc. (GILD) - free report >>

Published in